SMART, QUICK AND EASY FREIGHT FACTORING

Factoring is a very cost effective, stress free and expedite way of managing a company’s cash collection process without the addition of added debt.

Factoring is not a loan. It’s a popular method for freight financing through a process of selling unpaid freight bills to a third party. It allows truckers and fleet owners to convert invoices into cash, without having to wait 30 to 60 days to be paid. Access to funds is made available through a settlement system that provides increased payment speed and convenience. Quicker access to funding can assist with driver payroll, fuel expenses, or repairs.

To get funded with factoring truckers and fleet owners simply turn in a valid legible bill of lading and receive cash less a fee.  Factoring fees can range between 1% to 6% depending on terms of a contract. The factoring company completes the credit checks and process the invoices, leaving the trucking companies to manage their business.

Additionally, it’s not based on your credit worthiness but that of your customers. So, there’s no long bank applications or waiting days or even weeks for approval. Generally, the application process for factoring can be completed within 24 hours. The cost of factoring is generally more cost effective than hiring a bookkeeping team.